Published: March 24, 2021 |

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Oasis Midstream Partners (OMP) has agreed to acquire all remaining interests in U.S. midstream entities Bobcat DevCo and Beartooth DevCo from Oasis Petroleum  in a deal worth around $510 million.

The parties have signed a contribution and simplification agreement in this regard.

Oasis Midstream Partners is a gathering and processing master limited partnership formed by Oasis Petroleum. It was created to own, develop, operate, and acquire midstream assets across North America that are integral to Oasis Petroleum’s oil and gas operations.

The deal also eliminates incentive distribution rights (IDRs) from the capital structure of Oasis Midstream Partners.

Through the simplification, the midstream partnership will increase its stake in Bobcat DevCo to 100 percent from 35 percent. In Beartooth DevCo, it will increase its stake from 70 percent to 100 percent.

Bobcat DevCo operates gathering infrastructure that caters to the Wild Basin. Its assets are crude oil and natural gas gathering and compression, a natural gas lift system, and also water gathering and disposal system.

On the other hand, Beartooth DevCo is engaged in water gathering and freshwater distribution across the larger acreage position of Oasis Petroleum. Its assets are a pipeline system, freshwater sourcing and distribution, and disposal wells.

“This accretive transaction enhances our scale and strengthens OMP’s attractive position in the core of the Williston Basin. OMP is uniquely positioned to benefit from Oasis’s development program and capture additional third party business,” said Oasis Midstream Partners CEO Taylor Reid.

“Volumes from both Oasis and third parties provide a solid foundation through 2021 and beyond. This transaction is extremely attractive for our investors by allowing OMP to increase its scale in an accretive manner, while improving its competitive position to capitalize on future opportunities,” added Reid.

The simplification also has a right of first refusal in favor of Oasis Midstream Partners pertaining to midstream opportunities in the Painted Woods and City of Williston operating areas of its sponsor company.

Under the terms of the deal, Oasis Midstream Partners will pay $229 million in cash and issue 14.8 million of its common units to Oasis Petroleum.

“The simplification increases transparency of Oasis’ midstream ownership and highlights significant value within Oasis while improving OMP’s scale and competitive positioning,” said Oasis Petroleum Board Chair and CEO, Douglas Brooks.

“This transaction is a compelling proposition for both Oasis and OMP investors and was unanimously approved by the board of directors of Oasis and the general partner of OMP as well as its conflicts committee. OMP remains a valuable investment for Oasis and we will continue evaluating additional options for further value enhancement,” added Brooks.

Subject to customary closing conditions, the deal is expected to be closed by the end of this month.

Source: NS Energy

About Oasis Midstream Partners
Oasis Midstream Partners LP, together with its subsidiaries, provides crude oil, natural gas, and water-related midstream services in North America. It offers natural gas gathering, compression, processing, and gas lift supply services; crude oil gathering, stabilization, blending, and storage services; produced and flowback water gathering and disposal services; freshwater distribution services; and crude oil transportation services from the Wild Basin operating area to Johnson’s Corner. OMP GP LLC serves as the general partner of the company. The company was founded in 2013 and is based in Houston, Texas. Oasis Midstream Partners LP is a subsidiary of OMS Holdings.

To stop by Oasis’ website, CLICK HERE

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